A U.S. envoy's postponement of his Mideast trip appeared Tuesday to deepen one of the worst U.S.-Israeli feuds in memory – even as Israel's foreign minister signaled his government had no intention of curtailing the contentious construction at the heart of the row.

Hundreds of Palestinians hurled rocks at police and set tires and garbage bins ablaze across the holy city's volatile eastern sector, where the construction is planned. Plumes of black smoke billowed and the air reeked of tear gas in the heaviest clashes in the city in months.

Youths in one east Jerusalem neighborhood hoisted a giant Palestinian flag and shouted, "We'll die in Palestine, Palestine will live

The diplomatic crisis erupted last week after Israel announced during a visit by Vice President Joe Biden that it would build 1,600 apartments for Jews in disputed east Jerusalem, the sector of the holy city that the Palestinians claim for a future capital.

...Israeli Prime Minister Benjamin Netanyahu has apologized for the timing of the project's approval, but he has not said it would be canceled. On Monday, he defended four decades of Jewish construction in east Jerusalem and said it "in no way" hurts Palestinians.

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